Hutcheson v. Commissioner
United States Tax Court
Petitioner Palmer Hutcheson, as a partner in the law firm of Baker, Botts, Andrews and Wharton, owned a 7.5 per cent interest in the firm for which he paid $ 22,500. During the period from 1921 through 1945, the law firm purchased furniture, equipment, etc. out of partnership earnings which it capitalized and upon which it took depreciation.
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Petitioner Palmer Hutcheson, as a partner in the law firm of Baker, Botts, Andrews and Wharton, owned a 7.5 per cent interest in the firm for which he paid $ 22,500. During the period from 1921 through 1945, the law firm purchased furniture, equipment, etc. out of partnership earnings which it capitalized and upon which it took depreciation. On December 31, 1945, Hutcheson's unrecovered basis in these assets was $ 3,058.93. On December 31, 1945, Hutcheson withdrew from the firm to practice law as an individual and pursuant to the partnership agreement Hutcheson's investment was forfeited to…
1Opinion of the Court
OPINION.
Black, Judge:
The issue in these proceedings may be stated as follows: When petitioner Palmer Hutcheson withdrew from a law partnership and pursuant to the partnership agreement he received no compensation for his partnership interest, did petitioner sustain a loss (and if so to what extent) within the meaning of either subsections (e) or (g) of section 23 of the Internal Revenue Code.1
The parties have agreed that all of the relevant facts in Gaius G. Gannon, supra, may be considered facts in this case. In Gaius G. Gannon, petitioners therein claimed as loss in 1944 $10,770.42 which…
2Cases cited1 opinion
- Bush Terminal Bldgs. Co. v. CommissionerUnited States Tax Court · 1946
3Cited by20 opinions
- Harold Wener v. Commissioner of Internal Revenue, Molly Wener v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
- Citron v. CommissionerUnited States Tax Court · 1991
- National Metropolitan Bank of Washington v. United StatesUnited States Court of Claims · 1953
- Reed v. CommissionerUnited States Tax Court · 1986
- Maniscalco v. CommissionerUnited States Tax Court · 1978
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